Financial Aid Literacy & Debt Management
What is Financial Aid Literacy – Debt Management?
It's the ability to understand money and how to manage it so that you can make informed financial decisions – to save, manage and better protect your money. Help you prepare for the unexpected events and plan for the short or long-term goals.
National Student Loan Data System (NSDLS)
If you are not sure what kind of loans you have, visit the National Student Loan Database System for Students and select “Financial Aid Review” for a list of all federal loans made to you. Click each individual loan to see who the servicer is for that loan (this is the company that collects payments from you). It is very important to know your servicer. This might be a different company from the original lender. Remember, that system shows only your federal student loans, not your private student loans.
- Contains all Federal Loans
- Provide total loan amount
- Provide total loan Interest
** Interest not paid will be added (capitalized) to the principal amount when grace period ends. PLEASE contact your servicer regarding grace periods. Grace periods may differ.
- Private student loans are nonfederal loans, made by a lender such as a bank or credit union.
- Private student loans cannot be consolidated into a Direct Consolidation Loan.
- Private student loans can have variable interest rates, some greater than 18%. A variable rate may substantially increase the total amount you repay.
- The cost of a private student loan will depend on your credit score and other factors.
For More information visit studentaid.ed.gov/types/loans/federal
Fico Score Breakdown
- Payment history – 35% (Accounts paid on time)
- Amount owed – 30 % (# of accounts w/balances)
- Length of credit history – 15% (Larger the BETTER)
- New Credit – 10% (Recently opened accounts)
- Types of credit used – 10% (Variety is BETTER- Credit cards, car loans, mortgages, etc.)
- Guard your Social Security Number (SS#)
- Keep in a secure place
- Check your credit report ANNUALLY
- Verify for accounts
- Password - difficult to guess
- Don’t use birthdays or mother’s name
- Be alert to sign of Identity Theft
- Being denied or contacted by debt collectors
A Direct Consolidation Loan allows a borrower to consolidate (combine) multiple federal student loans into one loan. The result is a single monthly payment instead of multiple payments. A student can pay interest while in school. For more information, contact 800-557-7392.
In some cases, you might be able to reduce your interest rate if you sign up for electronic debiting. To learn more, speak with your loan provider.
Financial Awareness Counseling Tool (FACT)
The U.S. Department of Education released a new interactive loan counseling tool to provide students with financial management basics, like information about their current loan debt and estimates for student loan debt levels after graduation. Students can access the new resource, known as the Financial Awareness Counseling Tool (FACT).
Accept My Financial Aid Award
Login to Banner Self-Service, click on the Financial Aid tab, select award, then select the aid year; a page should display six tabs. Click the Accept Award Offer tab. If the tab is not active, click terms and conditions and accept then click accept award offers.
Automatic Deposit Set-Up
Login to Banner Self-Service, click on the Student tab, select student account, at the bottom of the page click on view/pay fees, a new page will appear at the top of the page select e-refunds.
The new interest rates for Direct Loans first disbursed on or after July 1, 2013 but before July 1, 2014 are as follows - Undergraduate Direct Subsidized and Unsubsidized Loans – 3.86%; Graduate Direct Unsubsidized Loans – 5.41%; and Direct PLUS Loans – 6.41%.
For Direct Consolidation Loans, the interest rate remains the weighted average of the interest rates on the loans included in the consolidation, rounded up to the next higher one-eighth of one percent. The only change made by the new law is the removal of the 8.25% cap.
Since the law specifically provides that the new interest rate determinations will apply “retroactively” to July 1, 2013, the Department of Education and their servicers will be making appropriate interest rate adjustments and notifying all affected borrowers.
Stafford loans issued in 2013-14 will accrue interest during the six-month "grace period" after students leave school. However, the federal government will continue to cover the grace-period interest for all subsidized Stafford loans issued before July 1, 2012, and the grace-period subsidy is scheduled to go back into effect for loans issued on or after July 1, 2014.
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